Lamb Weston Q4 Earnings Top Estimates

  • Lamb Weston Holdings Inc LW reported fourth-quarter FY22 sales growth of 14% year-on-year, to $1.15 billion, beating the consensus of $1.07 billion.
  • Volume declined 1%, reflecting lower export volume due to limited shipping container availability and disruptions to ocean freight networks.
  • Net sales from the Global segment rose 10% Y/Y, Foodservice increased 21%, and the Retail segment climbed 20%.
  • Gross profit increased 28.4% Y/Y to $254.2 million, and the gross margin expanded 230 basis points to 22%.
  • The operating margin was 11.8%, and operating income for the quarter rose 38% to $136 million.
  • Adjusted EBITDA increased 21% Y/Y to $202 million.
  • Adjusted EPS of $0.65 beat the analyst consensus of $0.51.
  • Lamb Weston held $525 million in cash and equivalents as of May 29, 2022. Net cash from operating activities for the twelve months totaled $418.1 million.
  • "We continue to be encouraged by the resiliency of U.S. restaurant traffic and french fry demand as consumers adjust to sharp inflation headwinds”, said CEO Tom Werner.
  • Outlook: Lamb Weston expects FY23 EPS of $2.45 - $2.85, versus the consensus of $2.85.
  • It sees FY23 sales of $4.7 billion - $4.8 billion, against the consensus of $4.41 billion.
  • Price Action: LW shares are trading higher by 0.85% at $75.79 on the last check Wednesday.
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